Calls for the Reserve Bank to respond swiftly to the latest shock drop in GDP

Our economy's contracted 0.9 percent in the June quarter.

Kiwibank Chief Economist Jarrod Kerr says the OCR needs to be cut from 3-percent to 2.5 percent as soon as possible, and may need to go as low as 2-percent.

He says we shouldn't be seeing another large contraction after last year's severe recession.

Kerr says the Reserve Bank hasn't been doing its job, and needs to show leadership rather than simply following outdated data.